Many personal care companies combine toothpaste with a toothbrush at a reduced price. Another example is fast food chains that combine a sandwich, fries and a drink for a lower price over purchasing them separately. This is also true for cable companies giving you a better deal if you purchase T.V., home phone and internet. This helps insure they are keeping your business for all services on the market.
I think that it might be D
Answer:
Cash interest paid to the bondholders in 2016 is $9,000
Explanation:
The cash interest paid on the bond can be ascertained using the below coupon amount formula:
cash interest=face value*coupon rate
face value of the bond is $100,000
coupon rate is 9%
cash interest=$100,000*9%=$9,000
The cash account would be credited while interest expense is debited with $9000 plus amortization of premium on bonds
Answer:
D. 1
Explanation:
C = 3q
differentiating:
dC/dq = 3
then:
the cost-output elasticity = dC/dq*q/C
= 3*q/3q
= 1
Therefore, The cost-output elasticity for this case is 1.
Answer:
$20,000
Explanation:
GDP is the market value of <u>all final goods and
</u>
<u>services</u> produced within a country in a given period of time.
The GDP includes only the value of final goods, <em>the value of manufactured automobile in this question</em>, not the value of intermediate goods used in it, <em>the windshield, tires, and others.</em>
Reason: The price of intermediate goods (windshield, tires, CD player) is already included in the final price of $20,000.
Hence, GDP discourage to include these intermediate goods value as it will lead to double counting given that they're already included in final price of $20,000.